Quote from Brian Resnik;
The first thing we want to make clear is that this version released via Cydia is not in any way an official Swype product, or related to Swype Inc. in any way. It appears this developer wrote some of his own code to emulate a Swype-like experience and is using our brand. We donít know if this is a Ďhackedí version of Swype or not. Iím thinking not. We are still investigating, but either way, this is not an official release or port of Swype to iOS. Additionally, since we weren't involved with the development of this application, we can not vouch for the integrity of the software. From a consumer's perspective, we recommend researching the developer on your own to ensure the trustworthiness of this application from a security standpoint.
Our legal counsel is advising us on the best course of action regarding this 'hacked' release. We'll continue to follow the situation and do whatever our management team determines is appropriate to protect our intellectual property. We're not looking to prove a point or anything like that. Frankly, as our CEO mentioned in an interview with GeekWire on the topic, the clear interest demonstrated by this release from iOS users in having Swype is exciting. But we do still need to protect our brand if it turns out that some of our code, our patents, are being used.
Also, people are already saying "this proves that you can get Swype on iOS, even if it's through Cydia, right?" Well, not really. Yes, you can get "tracing" to work via some serious hacking (and even then it only works on jailbroken phones, and in stock iOS applications), but there are other really important elements to Swype. For example, word replacement and editing. With Swype, we know that the prediction engine won't get it right 100% of the time. Most of the time, absolutely, but there will always be a mistake once in a while. The nice thing about Swype is that when that happens you can quickly pull up a list of alternative suggestions - in the new v3.0, they're automatically shown whenever you swipe a word or tap on a previously entered word. When you pick an alternative suggestion, Swype replaces the previously typed word with the new one. Without keyboard APIs, we have no way of interacting with the text field in those kinds of ways. Sure, you can get basic character entry to work, but to get the full Swype experience we absolutely require certain features to be implemented by Apple themselves.